President Donald Trump and his family's continued foray into the crypto space may tank the GENIUS Act

Cryptocurrency legislation in Congress may come to a screeching halt if President Donald Trump and his family continue to launch crypto business ventures.

A bipartisan bill in Congress providing a regulatory framework for stablecoins may come to a screeching halt if President Donald Trump and his family continue to launch crypto business ventures, according to a new report by Politico.

The bill, which passed out of the Senate Financial Services Committee on Monday with broad bipartisan support 18 - 6, could get a full vote on the Senate floor within President Donald Trump's first 100 days.

But it appears that a Democrat across the Capitol is planning on voting against the measure this week if it is not rewritten to ensure that Trump and Elon Musk can never get involved in the stablecoin industry.

California Democrat Rep. Maxine Waters, the ranking member of the House Financial Services Committee, is planning on voting against the Guiding and Establishing National Innovation for U.S. Stablecoins Act, also called the GENIUS Act, unless it includes language banning Trump and Musk from issuing stablecoins, one of her aides revealed to the outlet.

It puts her directly at odds with Trump since his family's crypto firm, World Liberty Financial (WLFI), just launched a stablecoin, called USD1, based on the U.S. dollar.

"I can’t think of anything quite so damaging to bipartisanship than that happening," said Rep. Jim Himes, D-Conn., who also sits on the Financial Services panel.

The Trump family has been involved with World Liberty Financial, which launched a Donald Trump coin and Melania Trump coin earlier this year. The total worth of all the official Trump coins in circulation adds up to over $2 billion, currently each Trump coin costs around $10. Melania's official crypto, meanwhile, is trading around half a dollar per coin.

The bill would charge the Office of the Comptroller of Currency (OCC) and Federal Reserve with regulating stablecoins. However, Senate Democrats have taken issue with the OCC overseeing the space and even wrote a letter last week to the agency and the Federal Reserve asking questions about how the organizations will not succumb to Trump's influence.

These Democrats argued in the letter that Trump could review any OCC actions taken against USD1 and that the president could implement policies friendly to WFLI's business interests.

“President Trump’s involvement in this venture, as he strips financial regulators of their independence and Congress simultaneously considers stablecoin legislation, presents an extraordinary conflict of interest that could create unprecedented risks to our financial system and to the integrity of decisions made by the [OCC and Fed],” the senators wrote.

“The launch of a stablecoin directly tied to a sitting President who stands to benefit financially from the stablecoin’s success presents unprecedented risks to our financial system.”

Though New York Democrat Sen. Kristen Gillibrand has argued that regardless of the Trump family's ventures crypto and stablecoins, she says the bill needs to move forward.

"You need the regulation regardless, but it’s certainly not helpful," Gillibrand said.

"It makes something that’s a very serious financial payment system into something that seems non-serious."

The GENIUS Act, if passed, would also establish licensing terms and reserve standards. A common criticism of stablecoins has been that though they are pegged to things like the U.S. dollar issuers do not have the amount of cash to back up the assets. For example, every stablecoin pegged 1:1 to the U.S. dollar should have a reserve amount of dollars equal to the number of stablecoins they issue, though that has not historically been the case.

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